Online Food Delivery Market: The Quick Evolution of Grubhub in the US Market

Although the COVID pandemic has severely affected the overall USA economy, one segment, which thrived was online food delivery service. In the USA, this market has grown by over double during this pandemic, following the strong historical development of 8%.

Food delivery apps including Grubhub have significantly benefited from amplified home delivery demands due to social distancing standards.

This research and report will help you walk through a short-lived analysis of the accelerated growth division of Grubhub. To do the analysis, we have selected cities having the maximum Grubhub users’ base (New York, Chicago, and Boston).

Note: We have compared a few of Grubhub’s understandings with its biggest opponent, DoorDash.

This chart indicates that New York is having the highest total users, as per about 37% of the total sales. Indifference, Miami had the lowermost share of sales at 7%. We could observe that the states having higher populations get comparatively higher sales.

Main Insights

New York is having the highest Grubhub listed restaurants having 11,655, trailed by Chicago having 6,150 as well as Boston having 1,997.

Around 57-60% of the clients are happy with the online order experience on Grubhub.

Factors Defining the Success of Different Food Delivery Apps: According to Grubhub Analysis

Do you understand that Grubhub has the highest sharing of sales with 37% share among the leading food delivery services online in New York City? Therefore, what makes online food delivery businesses like Grubhub successful? Let’s discover.

In this research and report, we will discuss some main success factors like:

  • Average Delivery Time
  • Cuisine Versatility
  • Customer Service Experience
  • Discounts and Pricing
  • Reviews and Ratings
Average Delivery Timing

Studies have shown that on-time delivery is an important factor to make sure repeat businesses for food delivery apps. No customers appreciate delays, particularly hungry customers. Accordingly, average delivery timing is amongst the most important factors in rating various food delivery apps.

Check the projected Grubhub food delivery timing for New York, Chicago, as well as Boston, is given below:

On average, the residents in Chicago need to wait for 41 minutes for getting their orders delivered with Grubhub. See the chart given below:

In the move of avoiding customer dissatisfaction as well as improving their services, Grubhub has launched a new feature named ‘Grubhub Guarantee’. It promises consumers on-time food delivery as well as the lowest pricing related to competitors.

If not fulfilled, Grubhub makes that right with the Grubhub Perks to get free food. The users just need to submit claims on an app, accordingly, the qualified orders get Guarantee perks, which can be utilized on the subsequent orders.

Discounts & Pricing

The United States market of online food delivery has reached the value of US $21.2 Billion during 2020. Amongst the most vital factors helpful to the apps’ success needs to do with the food prices. Without a doubt, the pandemic has set a ball rolling to the market’s quick growth. Although, discounts, as well as scope for saving, are a reason people endure to prefer online food ordering.

This app is also identified for its reasonable menu options as well as discounted offers. Similarly, Grubhub promo codes allow consumers in saving on each order. Furthermore, the Grubhub+ program provides members with attractive advantages like limited deals at chosen restaurants, limitless free delivery on orders above $12 to name some.

Here’s the chart showing an average food item pricing on Grubhub:

Cuisine Flexibility

Thousands of restaurants are getting added to a ‘Restaurant Inventory’ on Grubhub every month. Therefore, it allows the app in offering consumers an extensive variety of cuisines. The given chart here provides a quick snitch peek in total cuisines Grubhub as well as Doordash offer in various cities.

Moreover the flexibility of options and high quality also interests consumers in ordering more. Accordingly, Grubhub makes sure that the users have access to all popular, high-rated cuisines easily. The given chart shows a few of the most well-known cuisines on Doordash and Grubhub.

Customer Services Experience

A current survey indicates that problems with deliveries upset approximately 80% of the clients. One way of offering a great customer experience is through making sure the quality of important interactions. A survey further discovered that potential problems like unreliable delivery timing updates, the unexpected increase in waiting times, etc. could be a preventive to the success of the apps.

Grubhub has enforced different measures to improve its in-app consumer experience. Consequently, the company has advised restaurants to provide maximum transparency possible in the status of each order. A restaurant platform provides timely updates in food packing, pickups, as well as delivery to the users.

Opposite to customary minimum two-minute duration calls previously, users can place the order on an app in 45 seconds.

Ratings & Reviews

Studies indicate that more than 50% of 18-34-year-olds take online reviews into the consideration while making dining decisions. Ratings, reviews, as well as overall consumer satisfaction, play an important role in the popularity of food delivery apps including Grubhub.

How Popular Grubhub is?

Particularly, users that read different reviews on Grubhub include 1.5 times more probable to order it than those that didn’t. No matter the company places great importance on achieving great reviews and ratings from the customer base.

Grubhub has got different steps of getting ahead of competitors as well as improving user experiences. Mainly, it imposed a severe protocol, which has to get followed through listed restaurants as well as delivery partners. All the guidelines make sure that users get the best orders in time as well as with no negotiations in quality. It has knowingly contributed to getting positive results.

Just look at this chart:

A greater look at different reviews exposed the sentiments behind them. We have summarized this sentiment analysis within the given chart.

Perceive closely and you will see that around 57-60% of the clients are very happy with the orders. Furthermore, around 8% of customers had unbiased reviews in three cities. With comparison, we have made a stimulating observation, which most consumers are not leaving reviews as well as ratings with DoorDash.

In the below diagram, you can observe how about 76% of users are keeping away from giving reviews on Doordash. Lacking reviews, as well as customer ratings, could persuade distrust amongst users, compelling them to travel to different food delivery applications.

As the market space of food delivery is thriving, companies like Doordash and Grubhub must not rest on their laurels by themselves. You might have understood how focusing on the above-mentioned features can prove useful in supporting customer satisfaction as well as loyalty.

US States and Territories Not Having Tim Hortons Locations

The world has observed dramatic changes in ‘how people eat’. Around two decades back, restaurant quality’s meal delivery was mainly limited to different food items like pizza as well as easy takeout. Today, online food delivery has developed into a worldwide market worth over $150 billion, getting more than triplicated since 2017.

SO, if you want to set your foot in an online food delivery space, it is the finest time. Create a healthy restaurant database as well as sustainable delivery and pickup plan having the assistance of strategic locations datasets. You can easily use restaurant chain location scraping services from X-Byte Enterprise Crawling. For more details, contact us!